Good news is on the way for smaller property buyers: property transactions under ₹20 lakh may no longer require mandatory PAN disclosure.
The Income Tax Department has released draft rules suggesting this change, which could take effect from April 1, 2026 if approved.
Here’s a simple breakdown of what this means for buyers and sellers.
Why This Change Is Being Proposed
The government’s draft Income Tax Rules, 2026 aim to make property transactions simpler and reduce unnecessary paperwork.
Currently, PAN is required for property deals over ₹10 lakh. But with rising property prices, especially in cities and even in smaller towns, the ₹10 lakh threshold no longer reflects the real cost of many homes.
By increasing the threshold to ₹20 lakh, smaller buyers will have easier compliance and fewer formalities when buying homes in smaller towns or for lower-value properties.
Current PAN Rules for Property Transactions
Right now, anyone buying or selling property such as a house, flat, or plot must provide PAN if the transaction exceeds ₹10 lakh.
Under the new draft rules:
Transactions below ₹20 lakh may not require PAN.
Transactions ₹20 lakh or more will still require PAN disclosure.
Certain arrangements like property transfers via gifts or joint development agreements will also require PAN if they exceed the threshold.
PAN Still Needed for High-Value Deals
It’s important to note that PAN requirements are not being removed entirely.
For higher-value transactions, PAN is still mandatory.
This allows tax authorities to track significant property purchases and connect them to an individual’s income records.
In short, if you’re buying a smaller property under ₹20 lakh, this proposed change could simplify the process and reduce paperwork — while higher-value property deals remain fully compliant with PAN rules.
